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5 Accounting hacks to grow your eCommerce business

Accounting hacks to grow your eCommerce business - As an online retailer, you’re always looking for ways to increase your sales and grow your business

Accounting hacks to grow your eCommerce business

You may know about some of the more obvious tips, like offering free shipping or setting up a loyalty program, but here are some accounting hacks that you may not have considered that can help you boost your bottom line.

Accounting hacks to grow your eCommerce business

Ecommerce business owners face many challenges as they grow, but accounting is one of the most daunting. Most of these business owners have to do everything themselves, including bookkeeping and financial planning. 

This can be a huge challenge, but it's important to stay on top of your books if you want your business to succeed.

Business growth doesn’t come from making more money alone. It comes from dealing with the tedious aspects of business—such as liquidity levels and inventory management.

We'll be looking at 5 hacks to help you manage your eCommerce business finances—monitoring cash flows, optimising Cost of Goods Sold, business bank accounts, inventory management, and bookkeeping.

1. Open a business bank account

Opening a business account with a bank is the first step for any business. This may seem simple, but many new business owners make this mistake and regret it later on.

Mixing your business banking with your personal finances can be confusing and costly in the long run. It can lead to delays in making financial decisions and wasted time and money. Avoid this mistake by keeping your finances separate.

It can be helpful to separate your personal expenses from your business expenses. This makes it simpler to keep track of everything and can make tax season less of a hassle. It also makes it more likely that you will receive funding from potential creditors and investors.

2. Healthy cash flow

Knowing your business’s financial situation is critical for making informed decisions. However, this isn’t just about calculating your expenses and revenue. You need to go deeper than that.

Cash flow is essential to business success, but it can be difficult to stay on top of liquidity levels and payment cycles. 

It's important to have accurate and up-to-date cash flow statements so you can plan for the future. Having a clear understanding of your liquidity levels will help you make the most of your growth plans.

3. Cost of goods sold (cogs)

Many businesspeople don’t realize that labour costs and rent are expenses. But it’s important to know how much money you’re spending on a given operation. Knowing this information is critical for making sound business decisions.

The Cost of Goods Sold (COGS) is a term used in business to refer to the direct expenses associated with the production and sale of a product. This includes the cost of acquiring materials, manufacturing the product, and distributing it.

Focusing on COGS is a great way to boost your profits while keeping your costs down. To do this effectively, you need an accurate and reliable way to track these expenses.

4. Manage your inventory

Inventory management is the process of keeping track of your stocked goods—their dimensions, location, amounts, and weight.

This tool will help you manage your inventory more effectively. You’ll know when you’re running low on stock and can order more, and you’ll also be able to tell when you have too much stock or not enough. This way, you can make sure you always have the necessary materials to produce your products.

No one can deny the importance of having a good inventory management system. This is especially true if you want to run your business as efficiently as possible. Make sure to have a firm understanding of your inventory so that your operations can run smoothly.

5. Develop a bookkeeping system

Accounting and bookkeeping are often confused, but they are two different disciplines. Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. 

Bookkeeping, on the other hand, is the recording of day-to-day financial transactions. While the two fields are related, they are not the same.

Bookkeeping is the process of recording and categorising business transactions. It is a way of collecting and collating financial data. Accounting is more analytical, it involves interpreting that data.

There are many different ways to keep accurate books, all of which are important for sound business practices. Some common methods include (but are not limited to):

You can do your own bookkeeping. There are many software programs that are easy to use and can be found online. If you are feeling brave, you can also use an Excel spreadsheet.

There are a few different options for hiring a part-time bookkeeper. You can find someone online or locally-based, depending on your needs.

You may want to consider hiring a bookkeeper or in-house accountant to help manage your finances.

Business operations can be improved by understanding bookkeeping basics and using a tool like Osome to automate financial administration. This will help your business run more smoothly and enable you to scale up your operations.


Commerce is exploding, and as eCommerce businesses continue to grow, it is important to focus on accounting strategies that will help you maintain and improve your bottom line. 

In this article, we discuss a few simple hacks that you can use to make your accounting processes more effective. 

We hope you find this information helpful! If you have any questions, please feel free to reach out to us by following our social media pages or visiting our website today.